Permissions issue with virtual directory to UNC path
Solution 1:
The fact that it's an ASP.net app is probably exactly what the issue is here. Your application pool identity has to have rights (not necessarily the IIS identity; by default, the app pool identity is the local Network Service account.) You also probably need to run caspol.exe on your IIS machine.
http://msdn.microsoft.com/en-us/library/cb6t8dtz%28v=vs.80%29.aspx
http://learn.iis.net/page.aspx/50/aspnet-20-35-shared-hosting-configuration/
%windir%\Microsoft.NET\Framework\v2.0.50727\caspol -m -ag 1. -url "file://\\remotefileserver\content$\*" FullTrust
Solution 2:
I resolved our issue by creating matching accounts on both the web server and the unc server. I then modified the Application pool to run using that matching account not network service. This gave me the flexibility to sync the password on both servers without affecting other network service dependent functions.
Solution 3:
If this shared source is not an application (e.q. an image folder), Try to configure the virtual directory to be ignored by the root application which includes the virtual directory (in my case I've completed this by changing the root app pool type as Classic instead of Integrated mode). But if There is an application in the shared point then you may follow the way @mfinni stated.